Management consulting business plan: Your guide to success

Published Tuesday 4 November 2025

Table of contents

• What is management consulting?
• Why you need a consulting business plan
• Who are you writing the plan for?
• Define your consulting business model
• Identify your ideal clients
• A business plan for banks and investors
• A business plan for you
• Develop your marketing strategy
• Five top tips for writing a good consulting business plan
• Update your business plan regularly
• Plan for consulting success
• FAQs on consulting business plans

Key takeaways

• Define your consulting niche by clearly outlining your core services, industry expertise, and unique value proposition to help you stand out and attract the right clients who can benefit most from your specific skills.

• Create financial projections using accounting software and research typical consultant rates in your field, even without historical data, to establish realistic revenue targets and maintain professional documentation for planning or funding purposes.

• Identify your ideal client profile and focus on building relationships with reliable clients who pay on time and align with your business goals, while setting clear boundaries to avoid problematic clients that could harm your cash flow.

• Update your business plan regularly by reviewing financial performance monthly, assessing market conditions quarterly, and reviewing strategic goals annually to keep your consulting practice adaptable and growth-focused.

What is management consulting?

Management consulting is about helping businesses improve their performance. Consultants use their expertise to solve problems, identify new opportunities, and guide companies through change. You're not just selling your time – you're selling your knowledge, skills, and the valuable experience you've gained throughout your career.

Why you need a consulting business plan

It helps you clarify your ideas, make informed decisions, and stay focused as you grow.

Who are you writing the plan for?

Your business plan audience determines its structure and content. Most consultants write plans for one of two primary purposes.

For external stakeholders such as banks and investors

• Provide detailed financial projections and funding requirements
• Analyse the market and competitive positioning
• Prepare formal documentation for loan applications or investment

For personal planning:

• Set clear goals and strategy
• Assess risks and map opportunities
• Establish performance benchmarks and plan for growth

Even if you do not need external funding, writing a plan helps you spot challenges, set realistic revenue targets, and stay accountable to your business goals.

Define your consulting business model

Start by defining your core services and expertise. Are you a specialist in a particular industry or a master of a specific skill, such as financial restructuring or digital transformation? Clearly outlining your services and value will help you stand out and attract the right clients.

Identify your ideal clients

Focus on the clients you can help most. The most successful consultants have a clear picture of their ideal client.

A business plan for banks and investors

You typically need less startup capital for a consulting business than for a product-based company, but you may still need funding in some situations.

Common funding needs for consultants:

• Cover living expenses during the first three to six months
• Set up a professional workspace for client meetings
• Invest in marketing, such as website development and advertising
• Continue your professional development with certifications and training

When seeking external funding, investors require comprehensive financial documentation including:

• target market and sector analysis
• business objectives and USP (unique selling proposition)
• startup expenses and assets, including equipment
• overheads and fixed costs
• marketing strategy and budget
• funding requirements, loan collateral and cost of interest
• pay rates, revenue and cash flow projections
• sales forecasts in monthly intervals
• ongoing expenses
• growth projections and strategy

You may find it challenging to create financial projections if you do not have historical data.

Practical solutions:

• Use accounting software to generate professional financial tables and cash flow projections
• Research typical consultant rates and utilisation rates in your field
• Work with an accountant to ensure accurate financial modelling and compliance

Xero accounting software can help you create realistic financial projections and maintain professional documentation throughout your planning process.

A business plan for you

If you are self-funding, focus on your strategic planning rather than investor documentation. Your business plan is your personal roadmap for success.

Personal planning priorities:

• Strategic goal setting and performance benchmarks
• Risk management and contingency planning
• Professional development and growth strategies
• Work-life balance and sustainability planning

Key planning considerations for self-funded consulting businesses:

Reasons for being a consultant

Write down your reasons for becoming a consultant. Be honest with yourself. Review your list and focus on what motivates you.

Savings

Keep some money in savings accounts for tax obligations, especially if you pay tax at the end of the year. For example, if you pay contractors, the Australian Taxation Office (ATO) may require you to report these payments and lodge a Taxable Payments Annual Report (TPAR) by 28 August each year.

Relationship risks

Consider how consulting may affect your family or friends. Consultants often work irregular hours, sometimes from home or on weekends. Set clear boundaries for when and where you work to maintain healthy relationships.

Which clients to avoid and which to take on

You probably know which types of clients you prefer not to work with, based on your industry experience. For example, clients who pay late can affect your cash flow, so focus on working with reliable clients who support your business success. You can choose to stop working with clients who do not align with your goals.

Training and certification

But your clients are unlikely to pay for you to go on training courses – that is an expense you will have to cover yourself.

Personal goals

Or you might want to start employing other consultants at some stage and build up an agency – maybe even sell it.

What to do with your profits

When paying yourself or employees, the superannuation guarantee (SG) rate increased to 12 percent as of 1 July 2025.

Do not include some of this information in a financial business plan for banks or investors. However, it can help guide you in the early stages of your consulting career.

Develop your marketing strategy

This could include building an online presence, networking at industry events, or using referrals.

Five top tips for writing a good consulting business plan

Writing your first business plan may seem challenging, especially when turning your consulting expertise into a business strategy.

Five proven strategies to simplify the process:

• Write your first draft without worrying about grammar or structure. Get your ideas down on paper or screen.
• Research your market to understand where you will work. Knowing the details helps you write a more effective plan.
• Identify your unique selling proposition (USP). Why should companies hire you instead of your competitors?
• Get feedback from peers, friends, business associates, and potential customers. Listen to their suggestions.
• Keep your plan simple. Focus on the important points and avoid writing dozens of pages.

Update your business plan regularly

Update your business plan regularly as your consulting practice grows. This keeps your plan relevant and useful.

Recommended review schedule:

• Review your financial performance against projections each month
• Assess market conditions and the competitive landscape each quarter
• Review your strategic goals and service offerings each year

Common plan adjustments include updating your pricing strategies and refining your target markets. Significant business growth can also trigger mandatory reviews. For example, if your business earns $50 million or more in consolidated revenue, it may be classified as a large proprietary company under Australian Securities and Investments Commission (ASIC) rules, which require different financial reporting.

This is normal and valuable – use these insights to strengthen your business strategy and improve client outcomes.

Plan for consulting success

Write your consulting business plan for yourself first. Focus on what is important to you. This clarity will help you succeed.

Treat your business plan as a key part of starting your business, especially in consulting where you need initiative and drive to succeed.

Use the free business plan template to get started. With a clear plan and Xero accounting software to manage your finances, you can run your business with confidence and focus on delivering expert advice. Try Xero for free.

FAQ consulting business plans

Here are answers to a few common questions about the world of consulting.

What are the 7 C's of consulting?

The 7 C's model is a framework for managing a consulting project from start to finish. It includes Client (understanding their needs), Clarify (defining the problem), Create (developing a solution), Change (implementing the solution), Confirm (verifying results), Continue (ensuring long-term success), and Close (completing the project).

What is the rule of 3 in consulting?

The rule of 3 is a communication principle used to make information memorable and impactful. It suggests structuring your message in three parts: tell your audience what you're going to tell them, tell them the core message, and then tell them what you told them. This repetition helps ensure your key points are understood and retained.